Regulatory Crackdown On Goldman Begins
First the Fed, now Goldman Sachs. Hot off the presses:
Examiners at the Financial Regulatory Authority, the industry
self-regulatory body known as Finra, and the Securities and Exchange
Commission intend to ask Goldman for more information on these weekly
get-togethers, people familiar with the matter said.
This of course is in relation to the article that the WSJ printed yesterday on advance research looks that Goldman was providing to its preferential clients.
The huddles currently aren't disclosed in Goldman's long-term research,
although the firm Monday discussed adding disclosure on its client Web
site about the service. Some other firms, such as Morgan Stanley, also
give stock ideas to clients, but disclose the service in their
longer-term research and on their Web site.
Securities laws require firms such as Goldman to engage in "fair
dealing with customers" and prohibit analysts from issuing opinions
that are at odds with their true beliefs about a stock. Research
reports can often cause a stock to rise or fall.
Can someone please explain how FINRA and the SEC would actually chase the perpetrators of market injustice if it wasn't for the occasional articles in the mainstream media and the blogosphere providing them with the blueprints from A to Z of exactly how the big, "entrenched" firms game the "efficient" markets day in and day out?
Last time we checked, the SEC's 2009 budget was almost $1 billion. What the hell does this money go for aside for covering up massive market malfeasance and catching an occasional Ponzi after decades of ignoring incriminatory materials?
It is time to analyze whether the US public has any use for such worthless and expensive organizations as FINRA and the SEC, if at the end of the day the only way to fix a broken system is via a thousand "citizen's" cuts and bypassing Schapiro's utterly useless enterprise, whose only purpose is to serve as a springboard for cushy Wall Street General Counsel jobs.